馃攳
Which Malaysian Banks Should You Invest In? | MAYBANK, PUBLIC BANK, CIMB, HONG LEONG BANK, RHB BANK - YouTube
Channel: Invest With Stanley
[0]
what's the key difference between all
[1]
the Malaysian banks and which one should
[4]
you be investing in as fine now
[9]
[Music]
[11]
[Applause]
[12]
[Music]
[18]
hi guys Delia today we're gonna share
[21]
with you the main differences across all
[22]
the major malaysian banks and why you
[25]
should pick one over the other we'll
[28]
talk about 5min malaysia banks today may
[30]
Bank public bank CIMB Home Loan Bank and
[34]
our HP bank will look at each of their
[37]
revenue stream learning about where they
[39]
are making their money from we look at
[41]
why some of them are better managed than
[43]
the others and then we also look at
[46]
their valuation and compare which of
[48]
them are the cheapest right now on top
[51]
of that I'll share with you which of the
[53]
banks do I feel is the fairest of them
[56]
all
[58]
first stop let's look at why we even
[61]
need to invest in banks for me I see
[64]
banks as a proxy of the economy because
[67]
they give our loans to all sector of the
[69]
economy so when the economy does well
[71]
the bank does well too so if you are
[74]
investor who is very optimistic about a
[76]
Malaysian economy investing in a
[78]
Malaysian bank will definitely give you
[80]
that exposure in your portfolio okay
[83]
with that now let's dig deeper into each
[85]
of the banks let's start with Malayan
[88]
banking behind or may bang in short
[91]
maybing is the largest bank in Malaysia
[94]
by exercise and also by revenue it has
[98]
make a profit of 8.2 billion ringgit
[100]
back in 2019 it also has one of the most
[104]
diversify revenue stream of all the
[106]
banks only 62% of its operating income
[109]
is coming from Malaysia it counts
[112]
Singapore and Indonesia as this main
[114]
major overseas market as well it has a
[118]
very decent return on equity of ten
[120]
point nine percent showing that the bank
[122]
is quite well-managed if you want to
[124]
find out more what return on equity
[126]
means you can check out our previous
[128]
video right here next up is public bank
[131]
bahut bubble bank has long been an
[133]
investor favourite on Boozer Malaysia
[135]
the stock has returned more than hundred
[138]
and fifty percent since 2006 and that's
[142]
even before counting is dividend and the
[145]
key to public banks stellar performance
[147]
is due to its management it is the most
[149]
if
[150]
bang in Malaysia with a return on equity
[153]
of 13.6%
[155]
there is significantly higher than
[158]
always piers bubble bang is able to
[160]
achieve that with a very prudent risk
[163]
management the company has a very low
[165]
non-performing loan ratio of just 0.5%
[168]
there is almost three times better than
[172]
the Industrial Average and with a much
[174]
better risk management public bank has
[176]
been able to generate much better profit
[179]
for shareholders however one thing that
[182]
public banks lacks is diversification
[184]
today most of the revenue is still
[186]
generated in Malaysia on top of that it
[189]
has a very big unique trust business
[191]
contributing about 8% of its revenue
[194]
given a global trend that we are moving
[196]
more to us each year than unit trust
[198]
that portion of business might be facing
[200]
some headwinds in the future so bubble
[203]
Bank is not without risks next we have
[206]
cIMB Group behind
[208]
CIMB is the third largest bank in
[211]
Malaysia by exercise and it makes about
[213]
four point six billion ringgit back in
[216]
2019 however unlike bathing and public
[219]
bank which generate most of its income
[221]
from the retail market CIMB is more of a
[224]
commercial bank geographically it is
[226]
quite diverse if I only 69 percent of
[228]
his income is coming from Malaysia it
[230]
also counts Indonesia Thailand and
[233]
Singapore as its key markets
[236]
unfortunately CIMB is one of the least
[238]
well-managed bank in Malaysia only
[241]
making a return of equity of nine on
[243]
three percent that is significantly
[245]
lower than most of his peers which has
[248]
above ten percent are we next nest of a
[251]
Home Loan Bank behind this one is
[253]
trickier because there are three home
[255]
loan companies listed on Busan Malaysia
[257]
they are the home iam Finance Group aha
[260]
home loan capital bahut and from young
[263]
bank bahut what you need to know is
[265]
wholly on capital bahut is mainly the
[267]
investment banks dealing with stocks
[270]
bonds futures and unit trusts
[272]
Home Loan Bank bahut is the core of the
[275]
banking business giving our loads and
[277]
taking in deposits
[279]
and then home Lyon Financial Group is a
[281]
holding company it owns about 64% of
[284]
Home Loan Bank and 81% of home IAM
[287]
capital behind it also owns the
[289]
insurance side of the business however
[291]
even for the group most of his income is
[294]
still coming from home liam bank behind
[296]
so let's just focus on the bank itself
[299]
Home Loan Bank the heart make about two
[301]
point six six billion ringgit in 2019
[304]
although most of its revenue is still
[306]
coming from Malaysia it has a big
[308]
investment in Chengdu Bank an associate
[311]
in China and because of that investment
[313]
profit from associate is actually now
[316]
about 22% of its net profit similar to
[320]
public banking this Bank is also quite
[321]
well-managed with our way of 10.8% is
[325]
non-performing loan ratio is only at 0.8
[328]
half of industrial average lastly let's
[331]
look at our HP bank our history bank has
[333]
a more straightforward business about
[335]
89% of his revenue is coming from
[337]
Malaysia it also has a significant
[339]
investment bank business
[341]
splitting its revenue stream close to
[343]
50% from its investment income and
[346]
traditional banking income so that's the
[349]
major difference between the Malaysian
[350]
banks now let's check out the evaluation
[352]
for banks I like to use the
[355]
price-to-book ratio and also looking at
[357]
its dividend yield Book value is the net
[360]
asset that the company currently has and
[363]
the value is basically the income that
[365]
they are passing back to investors when
[368]
we scan through their price-to-book
[369]
ratio right now we can see that CIMB
[372]
Bank is the cheapest among them this
[374]
might be because of his lower quality
[376]
having the lowest return on equity among
[379]
all the banks however all the banks are
[381]
trading significantly lower than their
[383]
long-term average valuation right now
[385]
for example public bank has been trading
[387]
close to two times this Book value for
[390]
most of past decade the current low
[393]
valuation of banks might be due to the
[394]
risk of having an economic slowdown
[396]
right now due to the current pandemic
[398]
and because banks are proxy to the
[401]
economy when the economy is bad the
[403]
business for banks will be bad as well
[405]
now let's look at their dividend yield
[408]
based on the last year dividend we
[410]
see that all of them is having a very
[412]
high dividend you right now with me bang
[415]
at the highest at eight point six
[417]
percent however as mentioned before due
[420]
to the current pandemic there is a real
[422]
risk that dividend will be cut this year
[425]
so take those you with a pinch of salt
[428]
[Music]
[430]
now let's look at which one the banks do
[433]
I feel is the fairest of them all for
[436]
full disclosure I do not own any of the
[438]
banks right here but if I have to choose
[440]
I still have to go with may Bank it is
[446]
still the largest bank in Malaysia it
[448]
has a very diversified revenue stream
[450]
compared to the other banks and because
[453]
this business is mainly still serving
[455]
the retail market it is more resilient
[456]
than say a bank that is mainly serving
[459]
corporate clients although its valuation
[461]
is not the cheapest now but it is still
[464]
very reasonable in my opinion when
[467]
investing we should always go for the
[469]
cheapest stuff out there we have to
[470]
balance the quality of the business and
[473]
the valuation and for me Mabel has the
[477]
best balance right now do you agree with
[480]
me which one is your favorite bank to
[481]
invest in right now share your thoughts
[483]
with me down below apart from the banks
[485]
we actually have five dividend stocks
[487]
that we feel that is a better investment
[489]
right now just click on the link down
[491]
below to download your FREE copy of our
[493]
dividend stock right if you want to
[495]
learn more about investing such as
[497]
learning about price to book ratio and
[499]
also what is ROA
[500]
you can check out our investment cost
[502]
right here it's free for you to get
[504]
started that's it from me my name is
[506]
Stanley - Amir again invasively hi guys
[510]
thanks for watching the video if you
[512]
liked it please give us a like and if
[514]
you find it useful I hope you share it
[515]
as well remember to subscribe to our
[517]
Channel click on the bell button to get
[519]
notified on our next video I'll see you
[521]
in the next one bye
[527]
[Music]
Most Recent Videos:
You can go back to the homepage right here: Homepage